Skip to main content

How much will a house realistically appreciate?

In a midwest college town, right next to a military base, I bought a 3 bedroom, 2 bathroom, 1400 sqft ranch style house that was built in 1988, on .72 acres, with a fenced-in yard. I paid $249,000 using a 30 year mortgage at 4.3% in 2022.

According to Zillow (and the oh so reliable Zestimate) my property has appreciated to $264,000. Now I just can't help but wonder what is realistically the upper limit of appreciation for this home? I know my interest rate is low by today's standards, but I can't help but get the feeling that at a certain point, the appreciation of my property will fall below the compounding interest of my home loan, and I'll take a loss on it, because even after making renovations to the home, I'm still not sure I'd pay $260,000 for it, let alone $270,000+ in the next 5 - 10 years.

TLDR: How can you be sure that homes will actually appreciate, and avoid a loss?

Edit: I should add, I've moved away from the area, and am currently renting out the property.

submitted by /u/LeddyTheAxe
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1l6ake7/how_much_will_a_house_realistically_appreciate/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more